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Cash Accounting In Scientology

Scientology may be the largest organization in the world that uses cash accounting. It’s a method of accounting that books money in and money out at the time it is transferred, and usually used only in small businesses. In the U.S., businesses that make over $5 million per year are required to use accrual accounting, which counts income when the goods or services are delivered, and expenses when the purchased items are received.

Scientology services are usually paid for with Advance Payments, such as those represented by these invoices. We find it interesting that there is no mention of “donation” on them, only “invoice.” We asked a correspondent to explain how Advanced Payments work in Scientology.

These are AP invoices. AP stands for Advanced Payment. When they reg people for services, and the guy says “I don’t have the money” the reg says “make a flow towards the service” – he then pays $50 down towards that service. And so on – until the service is fully paid up. It all counts towards the GI stat for the week (Gross Income). And it’s one of the reasons the church is in trouble – they have literally millions in undelivered services.

When they do events such as Flag Tours, you aren’t getting out the door without putting something down towards your “flow” for OT levels, etc. It’s like a confidence payment. They call it “putting the postulate there.” All just total BS to get ANY money in that week – all driven by the insanity of getting one’s stats up for the week.

They spend the money that came in that week. So if something goes wrong and the person requests a refund, the org doesn’t have the money to give them, they do all sorts of crazy things to try avoid having to refund. It’s 100% against their OWN policy which states they must give a refund immediately on request.

So these documents show an Advanced Payment of $50 each towards Super Power and the Cause Resurgence Rundown, both of which are only delivered at the Flag Land Base in Clearwater, Florida. The invoices show Super Power costs $5,000 and Cause Resurgence costs $2,500.